MicroStrategy Buys 5,262 BTC for $561 Million

MicroStrategy, known for being one of the largest corporate holders of Bitcoin, has once again expanded its crypto reserves. The company announced on December 23, 2024, that it acquired an additional 5,262 Bitcoins (BTC) at an average price of $106,662 per BTC, totaling an investment of approximately $561 million. This latest purchase brings MicroStrategy’s total Bitcoin holdings to 444,262 BTC, which were acquired for about $27.7 billion at an average price of $62,257 per Bitcoin.

This move marks the seventh consecutive week of Bitcoin acquisitions by MicroStrategy, funded by the sale of 1.32 million shares of the company, generating the necessary capital. The company’s strategy to invest heavily in Bitcoin has been a point of discussion, with some viewing it as a bold step towards cementing Bitcoin’s role in corporate treasuries, while others express concerns about the sustainability of this approach due to potential market downturns.

MicroStrategy’s share price saw an uptick following the announcement, reflecting investor confidence in the company’s Bitcoin strategy. This purchase was made public just as MicroStrategy was added to the Nasdaq-100 Index, further highlighting its significant role in the tech and crypto sectors.

Michael Saylor, MicroStrategy’s co-founder and executive chairman, has been a vocal proponent of Bitcoin as a reserve asset. His vision appears to be gaining traction, with the company’s consistent buying spree setting a precedent for other corporations considering Bitcoin as a hedge against inflation and an asset for future growth.

This acquisition further solidifies MicroStrategy’s position in the Bitcoin market, now holding over 2% of the total Bitcoin supply that will ever exist. With the crypto market still showing signs of volatility, MicroStrategy’s commitment to Bitcoin remains a focal point for investors and market analysts alike.